Question
In this section, well collect data for Microsoft Corporation (MSFT) in order to calculate its historical average returns, and estimate its beta with the market.
In this section, well collect data for Microsoft Corporation (MSFT) in order to calculate its historical average returns, and estimate its beta with the market. To find the data, you can type MSFT into the search bar on Yahoo Finance. This will bring you to the page about Microsofts stock. To get historical prices, click on Historical Data. Well want monthly returns, so you must adjust Frequency to Monthly and then hit Apply.
We saw that the stock return is equal to (P1 P0)/P0 when there are no dividends. a) What was the return of Microsoft stock from September 30 to October 31 2021? b) What was the (arithmetic) average monthly return of Microsoft from October 2011 to October 2021? c) What was the total return for Microsoft from October 2011 to October 2021?
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